On Tuesday, vertically integrated solar products manufacturer LDK Solar (NASDAQOTH:LDKYQ) announced it has agreed to issue and sell 17 million new shares of common stock to Fulai Investment, a British Virgin Islands-registered investment firm owned and run by Hong Kong businessman Cheng Kin Ming.

LDK will sell the shares at $1.83 apiece, for a total purchase price of $31.1 million. Pursuant to the terms of the agreement, Fulai will be unable to resell the shares for 180 days after the transaction closes. The parties are aiming for a Feb. 28 closing date.

LDK was free cash flow-negative by more than $1.2 billion in 2011, the last year for which full-year figures are available. The company says it will use the funds generated from this sale for "general corporate purposes."

LDK shares are up 6.6% on the news, at $1.95.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.